Novastar: Somebody Knows

Could not resist commenting on today's story in the Kansas City Star, Page D3:
NOVASTAR: NYSE wants an explanation

The New York Stock Exchange asked NovaStar Financial Inc. to explain any developments that might have precipitated a 69 percent jump in its stock price Monday.

The unusual trading activity came three days after a waiver deadline [Nov-30] set by Wachovia Corp., NovaStar’s principal lender.

The Kansas City-based subprime mortgage lender responded publicly that its policy is not to comment on unusual market activity.

Well, of course not. Besides, looking at the chart above, that sure is an interesting curve. If there wasn't so many other nasty stuff going on in Kansas City, I wouldn't give this a second thought. It simply seems that Connecticut Yankees, known as carpetbaggers in the old days, seem to be swarming all over Kansas City at this point in time. For example:

• NAFTA and North American Union
• Breeden Assists Applebee's Take Over By IHOP
• H&R Block CEO Ernst out; Breeden named chairman

Let's get back to NovaStar. For a company that's been severely hurt in our current real estate fiasco, there's certainly been a lot of BIG Eastern interest in this Midwestern company. To start with, Wachovia seems to hold the thumbs-up thumbs-down power. So who's has a financial interest in Wachovia?

---

Symbol Name Of Corporation WB Major Holders Wachovia Corp. (As of 30-Jun-2007) (As of 30-Jun-2006) Top 10 Institutional Holders Shares 2007 Value 2006 Barclays Global Investors UK Holdings Ltd 96,736,649 5.08% $4,957,753,261 5.62% Capital Research And Management Company 60,600,327 3.18% $3,105,766,758 1.28% State Street Corporation 57,554,676 3.02% $2,949,677,145 2.93% Dodge & Cox Inc 56,574,779 2.97% $2,899,457,423 2.13% Vanguard Group, Inc. (The) 54,079,703 2.84% $2,771,584,778 2.59% FMR Corporation (Fidelity Management & Research Corp) 49,396,311 2.60% $2,531,560,938 3.03% Goldman Sachs Group Inc 39,414,353 2.07% $2,019,985,591 -.--% Davis Selected Advisers, LP 35,956,985 1.89% $1,842,795,481 -.--% Morgan Stanley 26,029,864 1.37% $1,334,030,530 -.--% Mellon Financial Corporation 24,702,332 1.30% $1,265,994,515 1.16% % of Shares Held by All Insider and 5% Owners: 2% -.--% Top 10 [1%] of 1009 Institutional Holders Control 26.32% 23.42% Percentage of Barclays and "Associates" Control 12.84% 10.95%

---

Now this is where I think it gets interesting. A whole lot of positions obviously have been closed in Novastar, as it crashed and burned this year. However, as of 30-Sep-07, there's a whole lotta NEW positions. Take a look here at this spectacular list. Then notice those names of the players at the top, and how all the rest fall into this conga line. Now here is the list of the major players inside NovaStar:

---

Symbol Name Of Corporation NFI Major Holders Novastar Financial Inc. (As of 30-Sep-2007) Top 10 Institutional Holders Shares 2007 Value 2006 Goldman Sachs Group Inc 900,983 9.54% $7,991,719 -.--% Bank Of America Corporation 686,165 7.27% $6,086,283 -.--% State Street Corporation 406,401 4.30% $3,604,776 -.--% Barclays Global Investors UK Holdings Ltd 274,559 2.91% $2,435,338 -.--% Babson Capital Management Llc 201,900 2.14% $1,790,853 -.--% Renaissance Technologies Corp 169,550 1.80% $1,503,908 -.--% Vanguard Group, Inc. (The) 165,296 1.75% $1,466,175 -.--% Parametric Portfolio Associates 146,186 1.55% $1,296,669 -.--% Lehman Brothers Holdings Inc. 126,457 1.34% $1,121,673 -.--% Wachovia Corp New 112,839 1.20% $1,000,881 -.--% % of Shares Held by All Insider and 5% Owners: 9% -.--% Top 10 [14%] of 71 Institutional Holders Control 33.80% -.--% Percentage of Barclays and "Associates" Control 26.56% -.--%

NOTE: Goldman Sachs also indirectly owns 779,638 shares, or another 8.25%.
Therefore, the TOP 10 actually control 42.05% of NovaStar.

---

So I would think that the NYSE should ask some other folks the question, "What and who is responsible for this perfect U turn?" Maybe they already know the answer, as there are some familiar names here, too.

---

Symbol Name Of Corporation NYX Major Holders NYSE Euronext, Inc. (As of 30-Jun-2007) Top 10 Institutional Holders Shares 2007 Value 2006 Atticus Capital LP * 15,049,852 5.68% $1,191,496,782 -.--% AXA (Paris, France) 12,372,250 4.67% $979,511,032 -.--% Horizon Asset Management, Inc./NY * 10,995,958 4.15% $870,549,994 -.--% Kinetics Asset Management Inc. * 9,385,720 3.54% $743,067,452 -.--% General Atlantic LLC * 8,061,704 3.04% $638,245,105 -.--% Jennison Associates LLC 6,002,019 2.26% $475,179,844 -.--% Credit Suisse Switzerland 5,942,734 2.24% $470,486,250 -.--% Barclays Global Investors UK Holdings Ltd 4,715,383 1.78% $373,316,872 -.--% Merrill Lynch & Co., Inc. 4,217,856 1.59% $333,927,659 -.--% Goldman Sachs Group Inc 3,773,552 1.42% $298,752,111 -.--% % of Shares Held by All Insider and 5% Owners: 0% -.--% Top 10 [3.2%] of 316 Institutional Holders Control 30.37% -.--% Percentage of Barclays and "Associates" Control 7.05% -.--%

---

© 2007 by Edward Ulysses Cate
Help Support This Site
Commentary Index
Home